Calculate Your Margin

Select exchange
  • NSE
  • BSE
Select product
  • Futures
  • Options
Call
  • Call
  • Put
(Lot size)

Combined margin requirements

Span

0

Exposure Margin

0

Total Margin

0

Margin Benefit

0

Exchange Contract Product Strike Quantity Initial margin Exposure Total
Grand Total

₹ 0

What is a Margin Calculator? 

A Margin Calculator is a vital online tool for traders, offering a precise calculation of margins needed for equity and F&O trades. This handy resource aids in determining the margin deposit required to secure leverage from your broker, a feature commonly available on brokers' websites. 
 

Using a Margin Calculator before initiating trades allows for more informed and strategic planning. The advantages are manifold, including immediate trade viability assessment and a comprehensive view of cumulative margins for all trades. 

 

With the Bajaj Broking F&O Margin Calculator, you gain insights into crucial details like initial margin, span, exposure, and any extra leverage offered. These are particularly crucial for strategies like options writing, shorting, and various F&O approaches. Moreover, the calculator provides margin benefits for various segments, including equity delivery, intraday, and commodities trading.

Different Types of Margins

  • 1

    SPAN Margin

    Standardised Portfolio Analysis of Risk is a basic margin in F&O trading. It measures the maximum loss an investment portfolio can incur under different market situations. Considering that it gets revised 6 times a day, the SPAN margin will depend on what time of the day you’re using the margin calculator.

  • 2

    Value at Risk (VaR) Margin

    VaR Margin quantifies an asset's potential loss probability based on historical volatility and price fluctuations. 

  • 3

    Exposure Margin

    Exposure Margin is collected to protect broker liabilities against adverse market conditions.

  • 4

    Extreme loss Margin

    Extreme Loss Margins are calculated to cover potential losses exceeding those estimated by VaR margins.

How to Use a Margin Calculator?

Step 1: Choose the stock exchange. 

 

Step 2: Choose the product type. 
 

Step 3: Enter the symbol of the security. 

 

Step 4: Insert the net quantity you want to trade for. 

 

Step 5: Finally, select the transaction type - buy or sell.

 

When you insert the aforementioned details, the margin calculator will display the combined margin requirement of SPAN and exposure margins. However, you’ll get to see the individual margins as well.

 

Remember that using a margin calculator will make trading easier for you. With the help of accurate and instant assessment of margins required, you’ll get to make better trading decisions.

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Frequently Asked Questions

What is the SPAN margin and how is it calculated?

Answer Field

SPAN is the short form of Standardised Portfolio Analysis of Risk. It’s an upfront margin collected by the broker before a derivative trade is initiated. SPAN margin calculation considers multiple scenarios to better understand the maximum loss amount a position can suffer in one trading day.

How does a margin calculator work?

Answer Field

The margin calculator makes use of a formula to determine the margin amount a person needs to deposit to cover the risk associated with a trade. The important factors which this calculator considers are an asset’s current market price, its volatility and the time left till its expiry.

How to Use Span Margin Calculator?

Answer Field

Enter information such as contract, quantity, and instrument type into a span margin calculator. It uses market volatility to determine margin requirements. Recognize risk because increased volatility can result in higher margin. Make wise trading decisions based on the results, making sure you have enough money to cover any losses. Update inputs frequently to ensure accurate computations

What is the margin requirement for cash market transactions?

Answer Field

There is no margin requirement for delivery trades in cash markets. But, the margin requirement is 20% of the total value of trade, when it comes to intraday trades in the segment.

What is the Value at Risk (VaR) margin?

Answer Field

Value at Risk margin indicates the probability of loss in the value of an asset. One can arrive at this figure through statistical analysis of an asset’s volatility and its historical price. Stock exchanges collect margin for 1 day for liquid securities and for 3 days for illiquid securities.

What is the extreme loss margin?

Answer Field

Extreme loss margin is a margin collected by stock brokers over and above the SPAN margin. The main aim behind collecting extreme loss margins is to offset the risks that may arise due to unpredictable market movements.

What are the other ways to use an F&O margin calculator?

Answer Field

You can use an F&O margin calculator to optimise your trade. Calculate the margin requirement for each trade and get a better understanding of the risks associated. You can identify potential hedges which may protect against unexpected market movements. Moreover, you can understand the appropriate position size depending on your risk tolerance.

What are some of the tips for using a margin calculator?

Answer Field

 Remember that margin requirements for F&O trading undergo frequent changes. So, it's important to keep monitoring them. Using different scenarios for analysing margin requirements is also important. You can use historical data for margin requirement analysis and track expiry dates regularly.

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